2014.06.0302:35:07UTC+00Dollar on the Verge of Three Month High Against Euro

The dollar continues its increase against euros as predictions come in about tomorrow's gains in both the Treasury yield and employment data. The improving labor industry in the US supported the nation's currency. The dollar has maintained the upper hand against the euro for almost three months now.

The dollar appreciated to $1.3586 per euro on May 39, its highest since February 13 before finishing at $1.3602 per euro at 10:59am. Meanwhile the yen gained 0.6% yesterday, closing at 102.37 yen per dollar, while the euro was valued at 139.25 yen.

Anticipation on the European Central Bank ease in monetary policy is stronger than ever as a report indicated a drag in European inflation. In the meantime, the Australian dollar is forecast to continue its decline as economists predict the Reserve Bank to maintain a record-low in interest rates during a policy meeting later today.

The ten-year Treasury yields rose 5 basis points yesterday finishing at 2.52%. It had its biggest downfall since January, this May, after dropping 17 basis points.

Meanwhile anticipation rises with the European Central Bank's announcement on June 5 regarding its monetary policies. It is expected that the bank would implement an ease in the policies that might include a negative interest rate, a first in the major banks of the world. All options to slow down the inflation such as conditional liquidity for banks and the negative rates are due to be discussed according to hints from ECB President Mario Draghi.